Altering the Course of Compliance
Compliance service has evolved from bill collection to financial counseling. The bill payor comes to the courthouse or through online services to review payment terms and resolve their court ordered debt.
Compliance Service clerks join with bill paying customers to complete court obligations. Clerks initiate a payment conversation to either pay in full or make time-based payments in a payment plan. This allows customers to keep in compliance without closing the debt immediately and avoids the risk of enforcement sanctions for failing to pay.
Customers are often unable to keep up with their payment plan. Payment failure happens from a customer’s limited ability to pay. The cure is extending payment due dates or by reducing payment installment requirements. But the compliance team is charged with keeping payment plans on time and closing out fine requirements.
Reestablishing a failed payment plan can be difficult. Past due payments are referred to collection agents. This adds collection fees to the original court ordered fine, between 25% and 40% in Florida, on top of the original court fine. Driver’s license suspensions create incentive for customers to get back on plan. But suspensions create challenges for customers to legally drive and maintain employment.
The key ingredient is to bring customers and clerks together in a well-defined payment plan. The terms, include the due date and the payment amount owed. Installments amounts must be clear and agreeable by both parties.
Clerks must stay involved with the payment plan process. It is true that customers have the obligation to pay as ordered by the judge and to do so in the time frames set in their sentence. But clerks can’t wait for customers to walk in or respond online.
Compliance service should include frequent notifications to nudge customer participation. This includes an introductory notice for payment plan enrollment, thank you notices for each payment made including the next due date, reminder notices for approaching payments, and late notices for missed payments.
If customers do lapse in their payment plan options should be available to restore the plan and keep the payment commitment. Negotiations during the plan include adjusting due dates or modifying amounts. Community service options provides customers the ability to stay in compliance through accredited community volunteer work. While the goal may be to pay a court fine, the ultimate goal is to comply with the judge’s order. Community service builds flexibility in how that debt is paid.
There will be times when a payment plan cannot be restored, and collection referrals are required. This should be a last resort action rather than a quick handoff that ends clerk responsibilities. The real goal is to see customers succeed in their compliance experience with the courts. It takes planning, patience, and involved compliance teams working through payment plan details.
A switch to a strong compliance environment also requires a funding commitment to the compliance office. Extending payments in plans reduces immediate revenue as payments come in over 12 months or longer. The new goal is to keep people on time, in compliance, and legally driving. With the right commitment to staffing and compliance resources, that goal will be accomplished.
Don Murphy is the Principal and Senior Consultant for Compliance Improvement Services (CIS) which provides consulting and training for courts and local government. He is a nationally certified court professional as a Fellow with the National Center for State Courts and has over 25 years of court administration experience.